Bank Of America Will Help Demolish Detroit’s Abandoned Homes

 

The Huffington Post Maxwell Strachan

Detroit Homes

Bank of America, the country’s largest bank by assets, has announced an initiative to demolish one hundred abandoned Detroit homes currently under the bank’s ownership, a task that CEO Brian T. Moynihan says will “help ‘right-size’ the city,” according to the Detroit Free Press.

The bank, which estimates the costs at $1 million, says the land plots will be donated to the city “for green space, urban farming or redevelopment.”

Bank of America also plans to donate ten renovated homes to Detroit police officers willing to move into one of Mayor Bing’s two designated-need neighborhoods, Boston-Edison and East English Village. Mayor Bing hopes to draw police officers — and eventually firefighters — back into the neighborhoods they service. Many have left for the suburbs since a bill ended residency requirements for officers in 1999.

Bank of America’s announcement comes days after the Census published findings that the population of Detroit, once America’s fourth-largest city, has dwindled by 25 percent in the past decade — and 60 percent since 1950 — to its lowest level in a century.

That slow exodus, the result of a declining auto industry, has turned once-prosperous neighborhoods into barren wastelands. Last year, the Wall Street Journal reported that then newly-elected Mayor Dave Bing planned to tear down 10,000 abandoned homes. But even that ambitious goal would only take care of one-ninth of the city’s 90,000 abandoned properties, according to Data Driven Detroit.

The glut of empty homes have caused real estate values to plunge. In the past year alone, according to real estate site Trulia, the median price for a Detroit home has fallen by 22 percent to $55,353. In Chicago, its metropolitan neighbor to the west, the median home price is $185,000.

Governor Rick Snyder has been on a campaign to reinvent MIchigan since his election last year. “We cannot successfully transition to the ‘New Michigan’ if young, talented workers leave our state,” Gov. Snyder recently said in response to the recent Census numbers. On Wednesday, he pinpointed international trade as the state’s focus going forward.

32 Responses

  1. […] View the original article here LikeBe the first to like this post. […]

  2. To neidermeyer:

    Get off the Eastside of the city and check out the West, Northwest end of the city. The Eastside was always in danger of blight because the traditional Black neighborhoods were old, few homeowners and too close to the factories.
    I could write a book about the things done to the city in the name of bringing in new business or keeping old businesses, and of course maintaining the more affluent areas (read White) at the expense of the other areas. Neither stayed or worked out right, despite huge tax breaks and incentives.
    I’d like to know whose bright idea it was that giving away huge tax breaks somehow magically, makes money for the city?

    20 years and several mayors after the riots, burned out buildings were still standing decaying and gathering more delinquent taxes.
    Everybody has pix of the ruined areas, nobody wants to show the places that are still alive and thriving.
    THE CITY IS NOT DEAD, NOT BY A LONG SHOT, BUT RELENTLESS BEATINGS WILL EVENTUALLY KILL HER. But not soon, because they’ve been trying for since the 67′ riots.
    http://www.trulia.com if you want current, up to date pix and information on any address anywhere in the USA.

  3. curious,

    Servicer can foreclosure on behalf of the (identified) real party, but servicer cannot testify as to the current whereabouts of loan collection rights – and cannot testify as to assignments/sale of the loan. All servicer can do is testify as to payment history. Thus, if servicer claims loan collection rights is still with F/F — they have no personal knowledge of this claim. Only F/F can testify to this claim.

    Servicers love to identify the original creditor — even though that original creditor may not be the current creditor. Servicers feel they have no obligation to identify the current creditor.

    In addition, insurance fraud is supposedly being investigated by US Attorneys. Meaning borrowers may have been falsely in default — before they even defaulted. And, therefore, loan disposed from F/F before you refinance.

  4. I sure wish you would go into details about the servicer relates to Fannie Mae. If the originator assigned it to the servicer and Fannie was involved then how can this be best explained? The servicer can foreclose in the servicers name for Fannie, so how is it easily broken down?

  5. Servicer has no personal knowledge as to the validity of assignments — or whereabouts of the mortgage/loan/default debt. Servicer is only a servicer as to payment history. Servicer cannot submit an affidavit as to anything else — beyond payment history. Servicer is in violation of federal law if servicer fails to provide the identity and contact information as to the current creditor.

    Again, servicer cannot testify as to anything beyond payment history. And, if borrower is NOT informed as to the identify of the current creditor — why should borrower pay anything? — because none of the payments will be properly credited.

  6. Angelo

    Precarious position indeed — but SOL always keeps clicking — have to bring action for fraud in the mod contract as to the real party.

    People – understandably — desperate to save home — will sign anything. Problem is — you have no idea what is going on behind scene as to what is actually owed on a mod – or who is the real creditor it. Why?? They can get away with it. And, what can be accrued after the loan mod is in effect?? Same old — same old story.

  7. Ian

    I know that the trustee reports are never right, and the plaintiff(trusts) are never the ones who complete the affidavit, it comes straight from the servicer.

    In my case, if the judge does his job and rules the modification is invalid because the trust didnt take assignment of the mortgage until 2 years after the modification was done(they can see into the future), then the affidavit will have to go back 6 years, and all $$ paid under the invaild mod. will have to be paid back to me(I hope).

  8. neidermeyer,

    I had no idea Detroit was that bad. Wow, it’s an eye opener as I viewed some of those videos.

    Complete breakdown or lack of leadership by the Mayors and Governor of Michigan over the years. Surely they all must have seen it coming, if slowly. You would think they would change policies to get the decline arrested and/or replace business’s that were on the way out somehow. Maybe they tried, maybe too corrupt, who knows, and I don’t.

    I still believe though that if states started their own state banks based on the model of North Dakota, things can be improved as Wall St and TBTF banks would be out of the loop somewhat.

  9. Angelo- the trust doesn’t go to much trouble to verify amounts owed, and on the other hand, adds to the amounts stated as owed without a care in the world.
    There is a story on DinsFla website this morning from Max Gardner (reuters) who states that in hundreds and hundreds of bankruptcy cases which he has seen, there are “mistakes” made in virtually all of them. It is the same for straight foreclosures,in either judicial or nonjudicial states.

  10. ANON

    How can a homeowner sign away his/her legal rights to an invail contract. If thats the case. the contract is VOID, a nullity!

    I have a mod. that was done 3 years ago to a trust, but the trust didn’t take assignment of the mortgage until 2 years after the mod.

    They are going to find themselves is a very precarious position, when it comes to the affidavit of amount owed.

  11. neidermeyer,

    Value depending on who you have for a judge – and who you have for an attorney.

    Talking with an attorney the other day who is known for a case. But, attorney just seemed to fall into winning the case because he is still in mindset of UCC and “note holder” possession. Told him possession is not enough (at least according to some recent decisions) — must also have conveyance. Conveyance depends on accurate assignments in full chain of mortgage title. That includes proof with Mortgage Schedule — and Mortgage Loan Purchase Agreements — which cannot be an “intent” to sell — but validly executed. Have never seen a MLPA that is not an intent to sell. Then you need to know – even if properly conveyed – where are the collection rights now??

    I like page 7 because servicers have to testify to current creditor — again, which is not servicer, trust, trustee – according to Fed Res and new law.

    However, servicers can purchase collection rights – —but, most often, still servicing for someone else. – who would be the debt buyer. In this case — knowing who the debt buyer is – and what collection rights were sold for — which were likely steeply discounted — could give homeowners better leverage to negotiate principle correction in a modification. Of course, modification would have to be in current creditor’s (debt buyer) name – and not in the name of servicer – or trust, or trustee.
    Seeing attorneys negotiate mods (which must be a new contract) falsely under servicer/trust/trustee name. This in an invalid contract – and, unfortunately, homeowner signs away legal rights.

  12. Fighting Mad as Hell ,,

    I’m not a Detroiter but I do follow that city because I have friends from there… The Silverdome just sold for about $500k , it’s being scrapped ,, the population is about 40% of what it was in 1955 , most of the city , both the city center and suburbs ARE ABANDONED ,, Detroit proper doesn’t have a single Supermarket ,, not one! I’m not doubting you , I’m sure some people have spent some money there … If I had to live there for some reason I’d follow most peoples lead .. buy a house for $2k and let the city take it back for taxes in a few years.. and get another one. Take a while viewing the city … http://www.youtube.com/results?search_query=abandoned+detroit&aq=f

    ANONYMOUS ,

    Any value to paragraph 1 C 2 in the proposed settlement? And what can we expect if the “servicer” isn’t actually a servicer but just a debt buyer without servicing rights?

  13. EULE,

    Page 7 — only relevant statement in entire agreement. — “if requested by a borrower at any time, servicer shall identify the trust or other entity in which the borrowers loan is held and provide contact information for such entity.”

    This is the ONLY statement with value — Why?? Servicer will be under oath — and loan is not where they have been claiming it is. Contact info?? As it now stands — if servicer provides trustee contact info— trustee just sends you back to the servicer.

    But, this is important, servicers will not be able to falsify information anymore — as loan Collection Rights are not in the trust!!!!

    Of course – four state AGs are opposing. Due to the old Moral Hazard issue — How about not lying anymore??? Must have some “moral” importance.

  14. Neidermeyer is correct dead wrong. Before the meltdown, NO HOMES NEEDED TO BE DEMOLISHED! THEY HAD OWNERS IN THEM. Occupied homes are kept up and don’t need to be demolished at all!
    Demand that BoA stop foreclosing on homes it doesn’t own in Detroit and elsewhere!

    Try actually keeping up with the real estate market before turning Detroit into an “vast urban wasteland that needs to be right sized because of rampant blight”
    Either the mayor has no clue or is part of the problem and listening to the wrong advisors
    THIS WAS PREMEDITATED, PURPOSELY CARRIED ACROSS THE STATE, AND WILL NOT STOP UNTIL EITHER THE PEOPLE REVOLT OR BoA RUNS OUT OF HOUSES TO STEAL.
    BANK OF AMERICA AND ALL THE OTHER LENDERS HAVE SINCE 2008:

    1. Given Predatory loans,

    2. Refused to pay county fees of nearly a billion dollars in required recording fees by using MERS.

    3. Sold and resold the mortgages to investors, each time paid no recording fees as required by Michigan law.

    4. Refused to modify or refi any homes across the state.

    5. Foreclosed on homes BoA had already sold and no longer owned.
    .
    6. Processed illegal evictions, repossessed home in the HAMP program and refused to give new home buyers mortgages to buy any homes.

    7. 95% of homes listed as sold in Michigan are those paid for by Fannie Mae, Freddie Mac, HUD and the VA.

    NO SHORT SALES, NO NEW SALES. HOMES ARE BEING SHIFTED FROM ONE FEDERAL AGENCY THAT PAYS FULL PRICE OR MORE THAN APPRAISALS. NO QUESTIONS ASKED.

    Here is a good example. (County recording fees have only begun being paid in 2009, some are back dated to cover previous years.)

    Price History for 15762 Helen St

    Price

    01/04/2011 Sold close details $157,075
    Public records Public records
    Recording Date 01/04/2011
    Contract Date 12/15/2010
    Sale Price $157,075
    Price Type Full amount stated on Document.
    County Transfer Tax $173
    Transaction Type REO and Trustee Deed
    Document Type REO Repossession
    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

    06/24/2002 Sold close details $133,900
    Public records Public records
    Recording Date 06/24/2002
    Contract Date 04/19/2002
    Sale Price $133,900
    Price Type Full amount stated on Document.
    Transaction Type Purchase/Resale Arm’s Length Residential Transaction

    It will cost more to demolish the houses than what they are worth.
    NOT! THESE HOMES ARE WORTH PLENTY!

  15. The new settlement Terms 3/3/2011 check II K8

    http://www.scribd.com/doc/50228602/27-Page-Settlement

    Servicer’s emploeyees shall not instruct , advise or recommend that borrowers go into default in order to qualify for loss mitigation relief .
    I DID IT ALREADY ,SO WHAT NOW ?

  16. Neidermeyer is correct. It will cost more to demolish the houses than what they are worth.

    Nothing but a P.R stunt by the banksters

    A good Bankster is a Jailed Bankster

  17. Maybe that land should be converted into public places where every bankster found guilty of fraud (every one of them) will receive publication humiliation twice a day instead of jail time, and have and the other pieces of land into whipping posts with 30 posts each. OR, and i am just saying……….graveyards…..

  18. Heres 3 Detroit houses for $1000 ,, $333.34 each http://cgi.ebay.com/INVESTOR-PACKAGE-12-PROPS-OIL-GAS-43-LOTS-BILLBOARD-/220758973467

  19. Detroit single family homes regularly sell for under the tax assessment amount… I’ve seen them sell for under $100 and $2000 would be a high end property ..

    Here’s a 5 br 2.5 ba duplex for $4900 .. it’s in good shape http://cgi.ebay.com/HUGE-DUPLEX-MAKE-SELLER-OFFER-NO-RESERVE-/260759479192

  20. Unfortunately, the spin is that this demolition is a good thing. That’s because there is no acknowledgement that there is not enough affordable housing for Americans. You can bet the citizens of Detroit had little say in this decision, as Banks can “buy” municipal favoritism, even after they create blight. I’d suggest that is part of the strategy, blight out a neglected neighborhood by providing fraud and liars loans to the folk who need a place to live, then turning around and profiting again by either bulldozing or developing.

  21. More crimes in progress.

    I think they call this house flipping, don’t they?

    Some form of eminent domain, perhaps?

    With no homes in place, no one can get them back.

    Unconscionable.

  22. Maybe Detroit should build a Jail for the Banksters on this land and make it a tourist attraction.

  23. A good Bankster is a Jailed Bankster

  24. Destroying the evidence

  25. Just as an off-topic aside, it may be remembered that the collapse of the Detroit auto industry started in the 1950’s, when President Eisenhower proposed a single-payer Federal health-care plan. the top execs of the auto industry said Never!, that it was socialism, and they would pay for their own workers for life-time care. The upshot was the financial collapse of the industry as the overhang crept up to a premium of $2,300 per car, just for the health care benefits for the retirees. Republicans who avoid getting wrapped up in ideology recognize that transferring health-care costs to a single-payer program in turn run and paid by the State means that they are not put at a competitive disadvantage; Eisenhower saw this, and saw that this would ensure American manufacturing success for generations. US technology and distributed benefits costs would offset cheap off-shore labor.

    The irony in the refusal of the strident conservatives to endorse the Ike Plan is delicious. Also stupid. Sadly, now an entrenched phenomenon in the Party.

    Meanwhile, do remember why BofA and BAC actually spend the money to go foreclose, take possession of, and eject the homeowner out of a property that cannot be sold and ends up torn down. It is first to ensure that the proceeds of the credit-default swaps are paid to BofA, and second to cover up the paper trail with a bona-fide foreclosure so nobody comes after them. Hey, folks, you voted for these guys, so here is what you get.

  26. They needed to kick out the homeowners, so they could get the title in their name to satisfy the deficiency of the fractional banking account. It is all about the title.

Leave a Reply

%d bloggers like this: